Economy at a standstill due to unpredictable future
Seoul (AsiaNews/AFP) Economic reforms are now underway and irreversible, but they still haven't resolved the country's grave economic and social crises, as North Korea still struggles with the poverty and isolation caused by its authoritarian regime.
The North Korean economy now seems to be at standstill and there seems there is no turning back while changes remain unforeseeable.
According to Marcus Noland, American economist for the International Institute of Economics, in 2002 salaries began increasing with prices , thus improving the financial well-being of families. But this is not so in industrial sectors which resemble those of the "Soviet-era or Eastern-block prior to undergoing reform", he said. The economist expressed doubt that North Korea can "return to classic planned economy" of the 1960s and 1970s "yet neither is it clear where it (economic reform) will lead to."
Based on one of his own studies Noland say that economic reforms in North Korea have sparked social and political mechanisms which will increase risks for Kim Jong-Il's government.
North Korea has been undergoing an economic and food crisis since the 1990s. The United Nations made a special appeal to donor countries in order to send as soon as possible aid to guarantee minimum nourishment at least to those who are the must vulnerable (women, children and elderly who are the main victims of malnutrition).
In a report on the denial of food rights released in January, Amnesty International said the government was partly responsible for the crisis. It said the distribution of food was done unfairly favoring persons earning incomes and with political links to the regime.
Restrictions of freedom of movement prevent North Koreans from searching for food themselves and transferring to areas having greater reserves. If they leave their place of residence without authorization, citizens may be arrested.
The movement, access and verifications of international humanitarian agencies involved in food distribution are likewise restricted. This has provoked a progressive disinterest of donors to make less of an effort to distribute such aid. (MR)
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